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प्रश्न
Mention two differences between fixed deposits and demand deposits.
Differentiate between Demand deposit and Fixed deposit (Three points)
Distinguish between demand deposits (current deposits) and fixed deposits (term deposits).
State two differences between fixed deposits and demand deposits.
उत्तर १
Differences between demand deposits and fixed deposits:
- The interest rate on demand deposits is very low, whereas fixed deposits carry a higher interest rate.
- Demand deposits can be withdrawn at any time, whereas fixed deposits can be withdrawn only after the expiry of a specific period.
उत्तर २
| Demand Deposit | Fixed Deposit | |
| 1. | A depositor can withdraw the money from such deposits at any time. | A depositor can withdraw the money from such deposit generally only after the period of time agreed upon by the bank and the depositor. |
| 2. | Usually no interest or very low interest is paid by the bank on such deposits. | The interest rates are higher in case of such deposits. |
| 3. | This deposit does not help depositors' money to grow effectively. | This deposit helps depositors' money to grow effectively. |
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संबंधित प्रश्न
Briefly explain how Cash Reserve Ratio can be used to control credit.
A depositor is allowed to withdraw more money than what is there in his account:
- What is the facility called?
- In which type of account is it permitted?
Commercial banks accept deposits, lend money and provide other services.
The current account holders are not given interest on their deposits. The reason being:
Mention primary functions of commercial banks.
Compare the rate of interest given to such an account to that of a Current Account and a Fixed Deposit.
Explain three important functions of a commercial bank.
Explain three ways by which commercial banks advance loans to the public.
What are time (or fixed) deposits?
Give two differences between recurring deposits and fixed deposits.
